Well this is frustrating.

C:\Users\Chris\Documents\django_dev\django-polls>python setup.py sdist
running sdist
running egg_info
creating django_polls.egg-info
writing django_polls.egg-info\PKG-INFO
writing top-level names to django_polls.egg-info\top_level.txt
writing dependency_links to django_polls.egg-info\dependency_links.txt
writing manifest file 'django_polls.egg-info\SOURCES.txt'
error: package directory 'polls' does not exist

Looks like this might be a solution:

https://code.djangoproject.com/ticket/16671#comment:32